NEWS & UPDATES

NCIGF Releases Winter Insolvency Trends 2018

National Conference of Insurance Guaranty Funds (NCIGF) has released the winter issue of its biannual Insolvency Trends 2018 white paper.

Authored by the NCIGF legal and public policy staff, Insolvency Trends 2018 provides a complete update on recent developments in insolvency law and practice, and a look at what is on the horizon in the year ahead.

Charles Renn Tapped as NCIGF Board Chairman

Indianapolis, IN, May 9, 2017 – The Board of Directors of the National Conference of Guaranty Funds (NCIGF) has elected Charles F. (Chuck) Renn, Executive Director of the Missouri Property and Casualty Insurance Guaranty Association, as the NCIGF’s new board chairman. Renn assumed the two-year board chairmanship at the NCIGF’s 2017 annual meeting in Minneapolis on May 4. Renn has served on the NCIGF board since 2009. He was the NCIGF board’s vice chair from 2015 to 2017. The NCIGF is a nonprofit, member-funded association that provides national assistance and support to the property and casualty guaranty funds located in each of the 50 states and the District of Columbia. The NCIGF coordinates information for multi-state insolvencies and provides legal, data management, administrative, communications and public policy support to its members across the nation. Renn has served as Executive Director of the Missouri Property and Casualty Insurance Guaranty Association for 16 years. He holds the same position for the Missouri Life and Health Guaranty Association and has held that position for 25 years. Prior to filling the role of Executive Director, Mr. Renn worked for the Missouri Department of Insurance for 14 years, where, among other positions he held, he served as the Director of the Division of Company Regulation for six years. Mr. Renn, a Certified Public Accountant, holds several professional designations, including Fellow, Life Management Institute and Certified Insurance Examiner. He serves on numerous task forces and committees of the NCIGF and the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA). In his address to the NCIGF membership following his election to board chairman, Renn said that a focus during his term would be on ensuring the property and casualty guaranty funds continues to occupy an integral place in the insurance resolution process. “The guaranty fund system is now a critical component of the insurance resolution process,” said Renn. “As Chairman of the NCIGF board, I will strive to do my best to anticipate the impact of changes that could affect our ability to fulfill our purpose. And, where possible, I will be equally diligent in trying to identify opportunities for the organization to solidify our role in the resolution process.” Nick Crews 317-464-8106 317-213-7227 (cell) ncrews@ncigf.org NCIGF President and CEO Roger Schmelzer said Renn’s election to NCIGF board chairmanship will keep the NCIGF focused on its strategic objectives during a critical time in the organization’s development. “Chuck has a clear understanding of and vision for the role the guaranty funds play in the financial services industry and their support of the insurance promise,” said Schmelzer. “NCIGF staff – and the property and casualty guaranty fund community overall – look forward to Chuck’s leadership over the course of his term.”

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While rare, the failure of a property and casualty insurance company is an unfortunate but inevitable result of a free-market. Insurer insolvencies can have serious financial implications for policyholders and claimants who have outstanding claims against a company.

Paying the covered claims of those whose insurance company has failed has been the mission of the property and casualty Guaranty Fund System for nearly 40 years. Created by state statutes, the guaranty funds fulfill the “promise to pay” that underlies all insurance contracts. For policyholders and claimants, the guaranty fund system is there, stepping in for failed insurers to pay policyholder claims at legally allowable limits.

The Guaranty Fund System has performed well over its history, paying out about $30 billion on approximately 600 property and casualty insolvencies since 1976. For policyholders and claimants, that's money that would have otherwise gone unpaid, or been greatly reduced, months, or even years, after the fact.

Supported by its member organization, the National Conference of Insurance Guaranty Funds (NCIGF), the state-based property and casualty Guaranty Fund System remains strong, attuned to current and emerging issues and brings essential consumer protection in an increasingly dynamic insurance industry. The National Conference of Insurance Guaranty Funds (NCIGF) is the non-profit, member-funded association formed to provide national assistance and support to the property and casualty guaranty funds located in each of the 50 states and the District of Columbia. The NCIGF coordinates information for multi-state insolvencies and provides legal, informational, administrative, communications and public policy support to our members.